State Prepaid Tuition and College Savings Programs

Editor:

Albert B. Ellentuck, Esq.
Of Counsel
King and Nordlinger, L.L.P.
Arlington, VA

Editor's note: This case study has been adapted from "Guide to Tax Planning for High Income Individuals," 1st Edition, by Anthony J. DeChellis, Douglas L. Weinbrenner, Catherine A. Roeder and Patrick L. Young, published by Practitioners Publishing Company, Fort Worth, Tex., 2000.

Facts: A favorite client, Penny Smith, recently had a baby and is already thinking of the costs of higher education. In addition to discussing Education IRAs and U.S. Savings Bonds, she asks about state tuition programs. Issue: Where can Ms. Smith find information on state prepaid tuition and college savings programs?

Analysis

The table presents information on prepaid tuition and college savings programs nationwide. Additional information can be obtained from a state's Website or by calling the telephone number shown. (See also the National Association of State Treasurers' College Savings Plan Network at www.collegesavings.org. For additional information on college savings programs, see Personal Financial Planning: "College Savings Vehicles," TTA, January 2001, p. 53.)